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OREGON COURT OF APPEALS RULES IN FAVOR OF THE CLASS

This website concerns a class action lawsuit entitled Mark Strawn et al. v. Farmers Insurance Company of Oregon, Mid-Century Insurance Co., and Truck Insurance Company, Case Number 99-08-09080, originally brought in the Circuit Court of the State of Oregon for the County of Multnomah. On December 5, 2003, the jury returned its verdict in favor of the Plaintiff Class. On November 28, 2005, after the claims process was completed, the Circuit Court entered its General Judgment, the text of which you can read here. The Circuit Court also entered a Supplemental Money Judgment in December 2006, the text of which you can read here.

The insurance company defendants appealed. You can read their Appellants’ Opening Brief here, the Plaintiff Class’ Respondents’ Brief here, and the insurers’ Appellants’ Reply Brief here.

On May 20, 2009, the Oregon Court of Appeals issued its opinion ruling in favor of the Plaintiff Class against the appeal brought by the insurance companies. The Court upheld the December 5, 2003 jury verdict for compensatory damages in the amount of $898,323.80, including prejudgment interest. However, while the Court affirmed the jury’s decision that the insurance companies must pay punitive damages, it ruled that the jury’s award of punitive damages of $8,000,000 exceeded what was allowable under the Due Process Clause of the United States Constitution. Therefore, the Court gave the Plaintiff a choice: accept a reduction in punitive damages from $8,000,000 to four times the amount of compensatory damages, which would be $3,593,295.20, or choose a new trial that would be limited to the amount of punitive damages only. You can read the Court’s opinion here.

Both the insurance companies and the Plaintiff Class have the right to ask the Oregon Supreme Court to accept review of the decision by the Oregon Court of Appeals. The lawyers for the Plaintiff Class are reviewing the issues and will advise Mark Strawn, the Class Representative, on whether to seek review of the reduction in punitive damages. It is not known at this time whether the insurance companies will also seek review.

IF YOU ARE A CLASS MEMBER, YOU MUST NOTIFY THE LAWYERS FOR THE CLASS OR THE CLASS ADMINISTRATOR IF YOU CHANGE YOUR ADDRESS. THIS WILL HELP INSURE THAT YOU WILL RECEIVE YOUR SHARE OF THE VERDICT, IF AND WHEN THE VERDICT IS DISTRIBUTED.

To learn more about the lawsuit, go to the Lawsuit FAQ page of this website. To learn more About the Attorneys who have established this site, please e-mail us at: ryugler@landye-bennett.com.